New York State Small Business Revolving Loan Fund

The New York State Small Business Revolving Loan Fund Round 2 (“SBRLF2” or the “Program”) will use $55,583,258 in federally allocated **State Small Business Credit Initiative (SSBCI) **funds for shorter-term financing needs and will address inequitable capital access with targeted lending that will address the financing gaps facing new companies, under-banked communities and small businesses which are more likely to be minority owned. Alternative financial loan capital will be utilized to create economic activity by providing greater access to short-term loan capital to small, micro and socially and economically disadvantaged individual (“SEDI”) owned businesses that are historically unable to obtain adequate credit or adequate terms for such credit. A SEDI business owner includes, but is not limited to, minority and women - owned business enterprises, service - disabled veteran -owned businesses, and veteran - owned businesses located in communities that are economically distressed. 

• Program loans shall be provided via Community Based Lending Organizations (CBLOs). CBLOs shall only use these funds to make loans to eligible businesses for eligible projects.  

• An “Eligible Business” is: (i) a business enterprise that is resident in and authorized to do business in New York State; (ii) independently owned and operated; (iii) not dominant in its field; and (iv) employs one hundred or fewer persons on a full-time basis.  

• CBLO loans to Eligible Businesses will be microloans (loans between $500 and $25,000); and regular loans (with a principal amount greater than $25,000 but no more than $20,000,000). Program funds used by the CBLO to fund an Eligible Business loan shall not be more than fifty percent of the principal amount of such loan and shall not be greater than $125,000. 

• Loan terms to Eligible Businesses shall be based upon each CBLO’s individual offerings but, in general, shall not exceed 10 years. 

• Interest rates and approval terms set by individual lenders. 

Eligible Projects Include:

• Working capital,

• acquisition and/or improvement of real property (excluding acquiring or holding passive investments in real estate),

• acquisition of machinery and equipment,

• and refinancing of debt obligations, provided, however, with respect to the Eligible Business loans for refinancing

  • (i) that the Eligible Business loan does not refinance a loan already in the portfolio of the CBLO or any Affiliate of the CBLO;

  • (ii) the amount of the refinanced loan or other debt is at least 150 percent of the previous outstanding balance;

  • (iii) the transaction results in a 30 percent reduction in the fee-adjusted APR contracted for the term of the new debt;

  • (iv) proceeds of the transaction are not used to finance an extraordinary dividend or other distribution;  

An “Ineligible Project” is:

• a project or use that would result in the relocation of any business operation outside of the State or from one municipality within the State to another, except under one of the following conditions,

  • (a) when a business is relocating within a municipality with a population of at least one million where the governing body of such municipality approves such relocation, or

  • (b) each municipality from which such business operations will be relocated has consented to the relocation;

• projects with respect to newspapers, broadcasting or other news media, medical facilities, libraries, community or civic centers, and public infrastructure improvements;

• providing funds directly or indirectly, for payments, distribution, or as a loan (except in the case of a loan to a sole proprietor for business use), to owners, members, partners, affiliates, or shareholders of the Eligible Business, except as ordinary income for services rendered;

• any project that results in the making of an Eligible Business loan to

  • (a) a person who is a member of the board of directors or other governing body, officer, employee, or member of the loan committee (or similar body), of the Eligible Business,

  • (b) a family member of any such person, or

  • (c) any person who shall participate in any decision on the use of the loan proceeds if such person is a party to or has a financial or personal interest in a proposed Eligible Business loan;

• a business engaged in speculative activities that profit from fluctuations in price, such as wildcatting for oil and dealing in commodities futures, unless those activities are incidental to the regular activities of the business and part of a legitimate risk management strategy to guard against price fluctuations related to the regular activities of the business or through the normal course of trade;

• a business that earns more than half of its annual net revenue from lending activities, unless the business is

• (a) a CBLO that is not a depository institution or a bank holding company, or

  • (b) a Tribal enterprise lender that is not a depository institution or a bank holding company;

• a business engaged in pyramid sales, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants;

• a business engaged in activities that are prohibited by federal law or, if permitted by federal law, applicable law in the jurisdiction where the business is located or conducted (this includes businesses that make, sell, service, or distribute products or services used in connection with illegal activity, unless such use can be shown to be completely outside of the business’s intended market); this category of businesses includes direct and indirect marijuana businesses, as defined in SBA Standard Operating Procedure 50 10 6;

• acquisition and/or improvement of real property for passive investments in real estate. Loan proceeds are used for passive real estate investment purposes when the proceeds of the loan are used to invest in real estate acquired and held primarily for sale, lease, or investment in which the developer does not intend to occupy or actively use the resulting real property. 

SSBCI Technical Assistance (TA) provides legal, accounting, and financial advisory services to help small businesses strengthen loan readiness and access capital, at no cost to the business.

What we can help with:

• Legal: business formation and governance; required registrations and licenses; contracts; investor documents; ESOP-related transfers; procurement and surety-bond support; contractor-financing and bonding needs.

• Accounting: audits and financial statements; digitizing records; training on accounting practices/software; WIP/AR/AP schedules; transitioning from cash to accrual to meet lender or surety requests.

• Financial advisory: banking relationships; applications for government small-business programs; identifying credit/capital/grants; financial-management guidance; presentations, models, and business plans; surety-bond basics and contractor-financing support.

Where to get help

TA providers serve regions statewide, including:

Adirondack Economic Development Corporation (North Country)

Eleven3seven5 (NYC, Mid-Hudson, Capital Region)

Renaissance Economic Development Corporation (NYC, Long Island, Mid-Hudson)

Pursuit Lending (Statewide)